China state-owned oil company to reduce production and cut capital spending

One of the first signs of lower production

CNOOC plans to reduce production to 470m to 485m barrels of oil equivalent this year, compared to 495m last year.

They also unveiled plans to reduce capital spending by 10% to 'no more' than 60B yuan in 2016.

Watch for similar announcements from China National Petroleum Corp and Sinopec.

Update: this news has been out for hours so it won't affect crude, which is down $1.04 to $28.38.

What's hurting crude is the IEA monthly report, which is sports the headline-grabbing line: "Unless something changes, the oil market could drown in oversupply."